Bankrupt Prison Health Company Wellpath Delays Executive Bonuses

Wellpath Holdings Inc. won court approval of its key employee retention program worth up to $3 million, but the prison health-care company’s proposed incentive bonuses for executives are on pause for now.

The company on Monday withdrew its incentive plan worth up to $4.6 million for 12 executives after lenders agreed to revisit the bonuses once a judge approves Wellpath’s proposed reorganization. The lenders are providing up to $55 million in equity financing to aid the company’s turnaround efforts.

Despite holding the executive bonus proposal for now, the company secured court approval of a retention program for 31 mid-level employees ...